Innoviva Stock Is Up Just 10% This Past Year. Here's Why a Fund Bought $2.5 Million More

Key Points

Dauntless Investment Group bought 116,863 shares of Innoviva in an estimated trade of $2.52 million last quarter. The quarter-end position value rose by $2.74 million, reflecting both trading and price movements. The post-trade stake stood at 122,402 shares valued at $2.85 million.10 stocks we like better than Innoviva ›

Dauntless Investment Group disclosed in a May 14, 2026, SEC filing that it bought 116,863 shares of Innoviva(NASDAQ:INVA), an estimated $2.52 million trade based on quarterly average pricing.

What happened

According to a recent SEC filing dated May 14, 2026, Dauntless Investment Group increased its holdings in Innoviva by 116,863 shares during the first quarter. The estimated transaction value was $2.52 million, calculated using the average closing price for the quarter. The stake's quarter-end value rose by $2.74 million, reflecting both the additional shares acquired and changes in the stock price during the period.

What else to know

Top holdings after the filing:

NASDAQ: INVA: $2.74 million (7.7% of AUM)NASDAQ: FEMY: $2.54 million (7.1% of AUM)NASDAQ: TLSA: $2.53 million (7.1% of AUM)NYSEMKT: AEON: $2.49 million (7.0% of AUM)NASDAQ: LINC: $2.42 million (6.8% of AUM)As of Friday, Innoviva shares were priced at $21.42, up about 10% over the past year and well underperforming the S&P 500, which is up about 28% in the same period.

Company overview MetricValueRevenue (TTM)$420.7 millionNet income (TTM)$504.3 millionPrice (as of Friday)$21.42One-year price change10%

Company snapshot

Innoviva products include RELVAR/BREO ELLIPTA, ANORO ELLIPTA, and TRELEGY ELLIPTA, targeting chronic obstructive pulmonary disease and asthma.Its revenue is generated primarily through pharmaceutical product commercialization and strategic collaborations, notably with Glaxo Group Limited.The firm’s primary customers are healthcare providers and institutions treating respiratory conditions in the United States and internationally.

Innoviva develops respiratory pharmaceuticals through strategic partnerships and royalty agreements in the global healthcare market. The company operates at scale within the biotechnology sector, leveraging strategic partnerships to expand its portfolio of respiratory pharmaceuticals. Its business model is built on product commercialization and royalty streams from collaborative agreements. Innoviva’s focus on chronic respiratory diseases and its established alliances position it competitively in the global healthcare market.

What this transaction means for investors

This purchase looks like a potential bet that the market is overlooking a company whose earnings power extends well beyond its legacy royalty business. While Innoviva's stock has trailed the broader market over the past year, Dauntless appears to be leaning into a story that's becoming increasingly diversified.

The company's first quarter offered several reasons for optimism. Revenue rose 11% year over year to $98 million, driven by strong growth from its Innoviva Specialty Therapeutics business, where net product sales jumped 37% to $41.4 million. U.S. sales alone reached $34.2 million, helped by continued adoption of products including GIAPREZA and XACDURO.

Management also highlighted progress on NUZOLVENCE, a newly approved gonorrhea treatment expected to launch in the second half of 2026. Meanwhile, the company ended the quarter with $603 million in cash and cash equivalents and continued returning capital to shareholders, repurchasing $20.4 million of stock during the quarter.

CEO Pavel Raifeld said the company is benefiting from a resilient royalty portfolio, growing commercial operations, and "meaningful value creation" across its healthcare investments. That showed up in results, with strategic investments valued at $773 million and quarterly net income reaching $186.6 million versus a roughly $47 million loss last year. And if management executes going forward, today's valuation may not fully reflect that transition.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.